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UAW Employees Ratify Cleveland-Cliffs' (CLF) New Labor Deal

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Cleveland-Cliffs Inc.’s (CLF - Free Report) new three-year labor contract with the United AutoWorkers (“UAW”) for Rockport Works operation has been recently ratified by its employees represented by the UAW Local 3044. The contract is effective from Oct 1, 2021 through Sep 30, 2024. It will cover roughly 350 UAW-represented workers at Rockport.

The company stated that it is pleased to continue its commitment to good-paying middle class jobs with a new labor agreement at Rockport. Its local team at Rockport is committed to the long-term health and success of the company, the country as well as the environment.

It embraces its Unions as partners and allows for participation in its success. With the latest deal, the company will be able to maintain its competitive cost structure in flat-rolled steel relative to any of its peers, the company stated.

Shares of Cleveland-Cliffs have skyrocketed 174.6% in a year compared with a 6.6% rise of the industry.

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Cleveland-Cliffs, in its last earnings call, stated that it expects adjusted EBITDA of around $1.8 billion for the third quarter. It also expects free cash flows of $1.4 billion for the quarter. The company also raised full-year adjusted EBITDA guidance to $5.5 billion. Demand for steel remains solid and the company continues to negotiate its contract businesses with several clients in different sectors, Cleveland-Cliffs noted.

 

Zacks Rank & Other Key Picks

Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .

Nucor has a projected earnings growth rate of around 537.4% for the current year. The company’s shares have soared 102.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 32.5% in the past year. It currently carries a Zacks Rank #2.

Olin has an expected earnings growth rate of around 662.2% for the current fiscal. The company’s shares have surged 222.6% in the past year. It currently flaunts a Zacks Rank #1.